Spot ethanol prices traded higher Monday amid an extended short-covering rally, driven by blenders who want to line up supply before ethanol plants in the Midwest embark on maintenance ahead of the end of the peak driving summer season, which is two weeks away.
In the physical market, prompt ethanol supply at the Argo terminal in the Chicago market traded at $1.54 per gallon and was then talked at $1.54 to $1.55 per gallon bid/ask spread, up 2.0 cents.
Prompt ethanol prices traded at a 1.0-cent premium to any-August ethanol delivery, with the backwardation deemed a bullish price structure. In the rail market, ethanol traded under Rule 11 terms for this week shipment traded at $1.5175 per gallon, 2.25 cents higher on the session.
George Orwel can be reached at email@example.com
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